NJ doctor to pay more than $5 million to resolve false claims allegations

Labib E. Riachi, MD, of Westfield, New Jersey, along with two companies that he owns and operates, has agreed to pay $5.25 million to resolve allegations that they submitted fraudulent claims to Medicare and Medicaid for diagnostic tests that were never performed, the U.S. Attorney's Office announced Friday.

Labib owned and operated Riachi, Inc. and Center for Advanced Pelvic Surgery, both based in Westfield. The settlement resolves allegations that Riachi and his businesses routinely billed Medicare and Medicaid for both anorectal manometry and electromyography, both diagnostic tests that were never actually performed, the U.S. Attorney's Office said.

[Also: New Jersey doctor allegedly filed millions in false Medicare claims, US Attorney's Office says]

The settlement also resolves claims that Riachi and his businesses fraudulently billed Medicare for physical therapy services that were, in reality, performed by unlicensed, unqualified personnel. According to U.S. Attorney's office, Medicare only covers services performed by a licensed therapist, so any claims resulting from these therapies should not have been paid out.

[Also: Running list of notable 2016 healthcare frauds]

The settlement is the final chapter in a civil suit filed less than a week ago in federal court in Newark, New Jersey on February 10, 2016. That complaint charged Labib with violating the False Claims Act, among other illegal conduct.

Twitter: @BethJSanborn